Photo credit: www.cnbc.com
Contemporary Amperex Technology Co., Limited (CATL), a leading player in the global battery industry, has released its financial results, revealing a 9.7% decline in annual revenue for the year ending December. This downturn arises amid a competitive pricing battle within the electric vehicle (EV) market in China that has significantly affected the world’s largest battery manufacturer.
According to the company’s stock exchange filing, its revenue totaled 362 billion yuan (approximately $50.01 billion), falling short of the London Stock Exchange Group mean forecast of 368.7 billion yuan. This reduction marks CATL’s first annual revenue drop since it began publishing its financial data in 2015.
Interestingly, while the annual revenue saw a decline, CATL reported a 15% increase in net profit year-over-year, reaching 50.74 billion yuan. This robust profit growth suggests that the company has been managing its operations efficiently despite revenue headwinds.
CATL is also preparing for a significant milestone, with plans for a public listing on the Hong Kong stock exchange. Reports indicate that this move could raise at least $5 billion, positioning it to be the largest initial public offering in Hong Kong since Kuaishou’s $5.32 billion offering in early 2021.
The Chinese electric vehicle market, critical to CATL’s business, saw a surge last year, partly fueled by government subsidies and incentives. Data from U.K. research firm Rho Motion indicates that sales of EVs in China escalated by 40%, reaching 11 million units in 2024.
As the foremost manufacturer of electric vehicle batteries, CATL has established strong partnerships with major automotive brands, including Tesla, Volkswagen, Li Auto, and NIO. The company commanded a remarkable 45% market share in EV battery installations in China last year, according to the China Automotive Battery Innovation Alliance.
Currently, CATL holds a market capitalization of 1.12 trillion yuan as reported by LSEG earlier this week.
However, the company has faced challenges beyond market competition. In January, the U.S. Department of Defense identified CATL and Tencent among its list of “Chinese Military Companies,” which could hinder the ability of these firms to provide goods and services to the department starting in June 2026. CATL has denied any involvement in military operations and intends to engage with the DoD to contest this classification.
Furthermore, CATL has expressed concerns regarding ongoing tariff uncertainties, which pose risks due to its extensive global operations. In light of this, the company has been proactive in expanding its international footprint, establishing a battery production facility in Hungary to supply automakers such as Mercedes and BMW, and embarking on a joint venture with Stellantis to create a lithium iron phosphate battery plant in Spain.
Source
www.cnbc.com